Tax Ratification Elections

Size: px

Start display at page:

Download "Tax Ratification Elections"

Martin Lawson
6 years ago
Views:

Tax Ratification Elections 29th Annual Election Law Seminar for Cities, Schools, and Other Political Subdivisions Kristi Clark, Senior Attorney TASB Legal Services This information is provided for

1 Tax Ratification Elections 29th Annual Election Law Seminar for Cities, Schools, and Other Political Subdivisions Kristi Clark, Senior Attorney TASB Legal Services This information is provided for educational purposes only to facilitate a general understanding of the law or other regulatory matter. This information is neither an exhaustive treatment on the subject nor is this intended to substitute for the advice of an attorney or other professional advisor. Consult with your attorney or professional advisor to apply these principles to specific fact situations.

2 What is a TRE? A tax ratification election (TRE) is a special election called by a school board for voters to approve the adopted tax rate.

3 When is a TRE required? If the governing body of a school district adopts a tax rate that exceeds the district s rollback tax rate, the registered voters of the district at an election held for that purpose must determine whether to approve the adopted tax rate. Texas Tax Code 26.08(a)

4 Rockport, Texas Houston, Texas Port Arthur, Texas West Orange, Texas

5 Are there any exceptions? A TRE is not required to approve the tax rate adopted for the year following the year in which a disaster (tornado, hurricane, flood, other calamity, but not drought) occurs if: Increased expenditure is necessary to respond to the disaster; and The governor requests federal disaster assistance for the area in which the district is located.

August 31 for September 1 fiscal year districts Tax rates must be

6 When does a district adopt its tax rate? Budgets must be adopted by June 30 for July 1 fiscal year districts August 31 for September 1 fiscal year districts Tax rates must be adopted by the later of September days after the district receives the certified appraisal roll

7 What comprises the district tax rate? Maintenance & Operations (M&O) rate Operating expenses, such as salaries, instructional costs, utilities, transportation, general equipment, maintenance $1.17 max Interest & Sinking Fund (I&S) rate Debt payments on bonds $.50 max

8 How does a district adopt its tax rate? Two methods Early adoption based on certified estimate of values Traditional based on certified appraisal roll Different notice & hearing requirements

9 How does a district adopt its tax rate? Supt proposes budget Board holds public meeting(s) Board adopts tax rate Board adopts budget Early Adoption

10 How does a district adopt its tax rate? Supt proposes budget Board holds public meeting(s) Board adopts budget Board adopts tax rate Traditional Method

11 Early v. Traditional Methods Early Based on property value estimates, available April 30 TWO notices, TWO meetings TAX RATE adopted first Traditional Based on certified appraisal roll, available July 25 ONE notice; may hold ONE or TWO meetings BUDGET adopted first

14 What is the rollback rate? The lesser of: Current year s compressed tax rate + 4 cents + additional cents approved in an election in 2006 or later + current debt tax rate Effective M&O tax rate + 4 cents + current debt tax rate Worksheet: comptroller.texas.gov/taxes/property tax/forms/index.php

18 What timelines apply to a TRE? Held Ordered not later than days after the tax rate is adopted On a uniform election date if one falls in that period 78th day before election day if it s a uniform election date 62nd day before election day if it s a nonuniform election date 30th day before election day if the district uses the early tax rate adoption method

20 Is a joint election required? Only if the TRE is at the same time as a trustee election; the joint election requirement only applies to a trustee election. Texas Education Code (a)

21 Can district resources be used to advertise? Public funds cannot be used for political advertising or electioneering to support a TRE School districts can disseminate factual materials about the TRE, including election details

22 Is this legal? Vote YES to Proposition Shady Grove ISD TRE, November 7, Official TRE logo Every child deserves a good education.

23 What must the ballot say? comptroller.texas.gov/taxes/property tax/docs/truth in taxation/school district sample rollback ballot.pdf

24 What happens after the election? Proposition passes by majority vote Adopted tax rate is the rate for the current year Proposition fails Board may not adopt a tax rate that exceeds the rollback rate

25 Where can I get more information? TASB Legal Services legal@tasb.org schoollawesource.tasb.org The information in this presentation may include the intellectual property of third parties.

26 schoollawesource.tasb.org

27 comptroller.texas.gov/taxes/property tax/truth in taxation/index.php

DATE ISSUED: 1/17/ of 9 UPDATE 112 CCG(LEGAL)-P

DATE ISSUED: 1/17/ of 9 UPDATE 112 CCG(LEGAL)-P Table of Contents Tax Rate Adoption... 2 Maintenance Taxes... 2 Assessor and Collector... 2 Certified Estimate of Values... 2 Appraisal Roll... 2 Truth-in-Taxation Requirements... 3 Tax Rate Adoption Requirements...